As student debt accumulates, people are also finding it harder and harder to make their payments on time. That shouldn’t come as a surprise, but serious delinquencies, defined as people who are 90 days late (or more) on their payments, are the highest they’ve been in 20 years – nearly twice what the delinquency rate was in 2003.

If you are a student wallowing in debt and nearing graduation, now is the time to rethink ways to refinance your debt. As daunting and nerve-racking as it may be, there are solutions to your debt problems so don’t panic just yet!

Here’s how a woman from Iowa refinanced her student loan.

After graduating from her reputable private college, Meg C from Des Moines, Iowa was blown away after noticing how much her student loan had grown over time. Between federal and private loans, Meg was looking at a bill of more than $100,000!

Just like many other students, Meg found that she would struggle to make her monthly payments. At $1200 a month, her loan payments represented a big chunk of her take-home pay from her first job as a graduate. When more than half of your salary goes towards paying off student loans, it doesn’t leave a whole lot of room to simply live your life.

As a result of that, her interest rates went up, reaching close to 10 percent, with monthly payments unable to substantially chip away at the principal. Meg realized that she needed to take control over her finances before she drowned in debt.

She learned later on that student loan refinancing could lower her interest rates. She proceeded to check out the rates of some potential lenders. Luckily for her, she came upon LendKey, a company that specializes in helping people restructure their loans.

About LendKey: LendKey is a lending platform and online marketplace that allows individuals to apply for and receive student loan refinancing from their local credit unions and banks. The company believes that borrowers can take advantage of the low-interest rates offered by community banks and credit unions. However, unlike other student loan refinancers, LendKey doesn’t directly provide funds to borrowers. It only compares student loan refinancing offers from various community banks and credit unions countrywide.Simply put, LendKey is like the Uber of student loan refinancing. It doesn’t own the funds that you intend to borrow helps connect you to the right financiers. The cherry on top of the student loan sundae? There are no service fees, but in order to be eligible, your credit score and salary must exceed a required threshold and you must be a citizen of the U.S.

Service at LendKey is rapid, and Meg was able to apply for a refinancing contract in a matter of minutes. Within a few days, she was approved for a 150year loan, with an interest rate nearly half that she was incurring at the time!

Source: Quick Loans Money

With LendKey, Meg’s interest rate went down from 10% to 5.79%. That means that Meg was able to save $4210 on interest payments. That is huge!

Furthermore, LendKey allowed Meg to go from a 10-year payment plan to a 15-year payment plan. The increased time-frame meant smaller monthly payments, giving her more wiggle room. Smaller monthly payments means more money to spend on groceries and other necessities. By refinancing, Meg was able to offer herself peace of mind and flexibility. She now had the ability to save for an emergency or even invest money with her retirement in mind.

If you find yourself in a similar situation to Meg, here’s what you should do.

Step 1: Research your rates: Most lenders such as SoFi, Lendkey, and Common Bond are able to furnish you with estimated rates after providing them with some basic information about yourself and what you are looking out for in a matter of minutes.

Step 2: Choose your new loan: After meeting the requirements and qualifying for refinancing, lenders will offer you a variety of loans with different terms and interest rates. Flexible repayment options are offered to you allowing you to choose between 5, 10, 15, and 20-year repayment terms. Additionally, you’ll have variable and fixed rate options to choose from.

Step 3: Fill out your application: You’ll need a proof of your citizenship, a valid ID number, proof of income, loan statements and perhaps, the information of your co-signer only if you are applying with one. These are standard documents that lenders would typically request.

Step 4: Wait for approval: The last and probably the most crucial step is where you would have to wait for approval after submitting your application. In Meg’s case, it didn’t take too long till her application was approved by her lender and funds released shortly after.

If you are tussling with huge student loans and feel the burden of having to make huge monthly payments on time every time, you need just stop and look around for help.